By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks rebounded Thursday after
data showed the economy grew at a robust pace in the final quarter
of last year, while upbeat earnings from Facebook Inc. and Visa
Inc. boosted the tech sector.
On Wednesday, main indexes dropped 1% as turbulence in emerging
markets sent investors for cover while the Fed announced it would
trim its monthly bond-buying stimulus program by another $10
billion.
The S&P 500 (SPX) opened 12 points, or 0.7% higher at
1,786.56, pulling away from a key resistance level.
The Dow Jones Industrial Average (DJI) began the day 76 points,
or 0.5%, higher at 15,815.30
The Nasdaq Composite (RIXF) gained 44 points, or 1.1%, to trade
at 4,103.82 shortly after the opening bell. Read the stock market
live blog.
The U.S. economy expanded rapidly in the final quarter of 2013,
the Commerce Department said on Thursday, as consumers shrugged off
a government shutdown, with the data fueling hopes of even faster
growth ahead. The gross domestic product grew at 3.2% annual pace,
largely in line with expectations.
The number of people who sought U.S. unemployment benefits near
the end of January rose to the highest level in six weeks, but it's
unclear whether the increase is the residue of holiday-season
distortions or reflects a deterioration in the labor market. The
less volatile four-week average rose by a fraction.
Technology stocks rallied after upbeat earnings from Facebook
Inc. boosted sentiment earlier.
Facebook inc. shares (FB) surged 15.2% amid high volumes, after
its quarterly results, announced after the market close on
Wednesday, topped Wall Street's consensus.
Shares of Google Inc. (GOOG) rallied in after-hours trade on
Wednesday following the company's announcement that it will sell
its Motorola Mobility phone-hardware unit to Lenovo Group Ltd.
Shares rose 2.3% ahead of earnings, which are due to be released
after the closing bell.
Shares of Visa (V) rallied before the bell on higher quarterly
earnings and revenue, but gains were pared and were up 0.7%.
ConocoPhillips (COP) shares edged lower after the company posted
a profit of $2 a share for the fourth quarter.
Qualcomm Inc. (QCOM) shares rose 2.4% after the quarterly
earnings beat forecasts late Wednesday.
In overseas markets, European stocks declined for a second day
on the heels of China data, which showed confirmation of a January
pullback in the country's manufacturing sector. That data also hit
Asian markets. Yen strength leaned on the Nikkei Stock Average ,
which closed off 2.5%.
The dollar continued to strengthen along with the yen as
pressure remained on emerging-market currencies such as the Turkish
lira and Russian ruble. The Hungarian forint also saw pressure
against the euro. Gold slipped, while crude oil prices rose
following GDP data.
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